A Guide to the Customer Onboarding Process for Bank Account Opening

What is Customer Onboarding in Banking

A major element of the onboarding process for banks is verifying the identity of customers using KYC (Know Your Customer) to gather information about the potential customer. This process usually takes place online; it is comprehensive and vital in banking compliance checks. Customers wanting to open a bank account are obliged to fulfill the KYC requirements in order to be accepted as a new banking customer.

Onboarding Process meaning in Banking

Onboarding is a broad term referring to the complete process of taking a new customer “onboard.” This encompasses the KYC process; gathering pertinent information about the new customer; identity checks; gathering all the necessary documentation and sometimes face-to-face interviews. Only once the bank’s specific onboarding process has been completed successfully can a new customer open an account or have business dealings with the bank. Banks have the challenge of complying with onboarding requirements and simultaneously making sure the onboarding experience is a painless one for the customer.

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Advantages of Today’s Customer Onboarding for Banking

  • The customer onboarding process is now digitized so banks can future proof their establishment and remain competitive.
  • The present customer onboarding process is transparent and geared towards providing a positive customer experience.
  • Today’s streamlined onboarding process means more efficiency in banking and faster processing of new customers.
  • Today’s modernized digital customer onboarding process saves money as well as time.

Onboarding for Business Bank Accounts

Banks in general are not yet taking full advantage of technical advances and innovations available to them. The onboarding process for corporate customers still puts much of the burden on the customer to gather and present documents and information. The present method of onboarding for corporate customers also costs the banks in time and money. There is no shortage of technical innovations that can help banks improve their corporate customer onboarding process.

Corporate Onboarding benchmark Survey

Evaluating the efficiency of the corporate onboarding process is difficult because of a lack of transparency. For this reason banks find it hard to compare their corporate onboarding process to that of their competitors. By using the corporate onboarding benchmark together with an internal analysis of key performance indicators it is possible to gain insight into the corporate onboarding process and determine the changes that need to be made without having to completely re-design the system. This is one the reasons why the process of a virtual bank account with IBAN can take some time.

The Steps of Onboarding in Banking

These days the onboarding experience in banking is no longer a drawn-out, painful mess of paperwork and uncomfortable personal identity checks. Today the customer experience has been greatly improved.  New technology and organization has been implemented so that the customer’s onboarding experience is efficient and painless. Perhaps the most time consuming stage of the onboarding process involves meeting compliance and legal requirements which involves gathering documents and having them analyzed

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